We’re Growing, New Planning Offices Opening

Hi Daryl,

Congratulations!!!!!

i hope all goes well for you… you have been really helpful to members of this forum and other known forum on net.

Regards

From a business expansion point of view I think you're skating on thin ice. The graphic tells a fairly obvious story. New sales are on a steep descent trajectory with occasional small rallies that wither fairly quickly. That's been going on since 03. Approvals have tracked reasonably well against sales but now we have a significant divergence. I would expect to see a bounce in sales if some good economic news eventuates but we're in an election year and things aren't getting better by any stretch. 

The upside is there have been 6 up or ascending years (approvals) against 4 rather steep descending years. Approvals are down 40% from their 07 highs with a definite down trend though. The graphic suggest approvals may have topped again in Dec 12. I expect to see another sharp descent continuing the trend in 2013. 

For business planning purposes I would be looking for a volume vacuum behind this current demand surge and be planning how to cope with that by about mid 2013. You might want to consider how you can become more geographically flexible given the nature of the business if you want to retain/maintain an elevated top line and staffing. You also want to get a firm handle on the competition and see if they are expanding as well. When the contraction invariably comes there'll be more capacity fighting over a smaller market for sure.

I started in heavy construction when I was 16. I don't think I've ever known a time when the building industry wasn't flying or crashing.

Nothing wrong with that. Leapfrog on the demand surges. You do need a long strategy though to ensure you capture market share in growth phases and not volume share only. You also need a counter-balancing strategy when demand falls off. This might involve diversification into other planning centric activities or alternately activities with a flatter demand profile to even out revenues and staffing efficiency issues.

One thing you should look at is business size and service (inventory) offerings. It's very hard for a small business (3 seats) to cope with market/economic fluctuations and continue growing as opposed to say 50 seats and diversified expertise. As a small business you might want to look at collaborative business approach through formal business partnerships with like minded and complimentary businesses. It's a sum of the parts are greater than the whole approach to enhancing survivability.

Definitely good but as you grow these attributes can be lost without good forward planning.

Have you thought about overseas branches? Timor comes to mind as a place with considerable potential for your line of work.

Been shaggin' around with businesses for the last 30 odd years Joe. My Maltese daughter-in-law calls me Wiki.. I've coached a few businesses over the years. Usually people I know who've fallen in a hole and can't figure a way out.

I hear ya! The joys of being self employed.

Always good to have reserves on the team.  (Don't tell her I said that)

JV Partnership come startup (planning, consultancy, legal) with a couple of savvy Timorese law grads?? Base an office in Darwin. I think that's where most of the international companies doing biz in Timor hang out. Lots of expansion both commercial and residential happening there. 

Have you seen this?

Stockland follows Mirvac with warning

Big guys are leaving town. Might be up beat for the small developer though… less competition.